Answer:
trying to close the sale
Explanation:
When someone is closing a sale, he/she is trying the complete the sales process by effectively getting a purchase order. In this case, the salesperson is trying to convince the client to finally place an order for 20 cases of Ecco brand golfing shoes. The whole selling process is carried out to finally be able to close the sale, it is the climax of the sales process, the salesperson either makes it or not.
Answer:
$1.86
Explanation:
Earnings per Share = Earnings Attributable to Holders of Common Stock ÷ Common Stock Outstanding
Old Earnings Per Share
Earnings per Share = $6,000,000 ÷ 1,000,000 = $6.00
New Earnings Per Share
Earnings per Share = $6,000,000 ÷ 1,450,000 = $4.14
Dilution in earnings per share = $6.00 - $4.14 = $1.86
Answer:
.b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant
TRUE The multi-stage valuation considers different grow rates for the subsequent years
Explanation:
a. Two firms with the same expected free cash flows and growth rates must also have the same value of operations
FALSE as their cost of capital can differ.
c. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
FALSE dividend yield is a relationship between price and dividend it doesn't considers the growth of the company, just current values.
d. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate
FALSE They are discounted at the difference between return and grow rate
e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
FALSE It considers the capital gains as speculations
Answer:
$41.14
Explanation:
Dividend per share=$4
Divided=1-retained profits=1-.2=.8
Cost of equity=15%
Growth rate=27%*.2=5.4%
The formula is;
Current Stock price=Dividend/(cost of equity-growth rate)
Current stock price=4(1-.2)/(.15-.27*.2)=$33.33
Share price after 4 year will be=$33.33(1+.27*.2)^4=$41.14
You are expressing communication skills
